Es­to­nia’s A+ rat­ing up­held by Fitch

Baltic News Network - - Front Page -

Credit agency Fitch has main­tained its longterm foreign and lo­cal cur­rency is­suer de­fault rat­ings for Es­to­nia at A+, the third high­est in­vest­ment grade.

The firm, which is based in both Lon­don and New York, wrote in a press re­lease pub­lished on Fri­day, May 12, that Es­to­nia’s sov­er­eign rat­ings are backed by a strong sov­er­eign bal­ance sheet, a sound macroe­co­nomic pol­icy frame­work, euro­zone mem­ber­ship and healthy gov­er­nance in­di­ca­tors as com­pared to sim­i­lar coun­tries rated by Fitch.

In 2016, Es­to­nia recorded fis­cal sur­plus for a third year in a row, but for 2017 and 2018, the firm pre­dicts Es­to­nian bud­get will have 0.5% and 0.8% of GDP deficits.

Keep­ing Es­to­nian rat­ings from higher – AA – grade is «Es­to­nia’s small size and vul­ner­a­bil­ity to ex­ter­nal shocks, and low in­come per head», the firm wrote.

REUTERS/SCANPIX

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